Center City retail market stronger than ever

An increase in residents, visitors and workers who have disposable income to spend on everything from Salvatore Ferragamo shoes, Nars makeup to a Bolier-designed writing desk has generated $1 billion in retail demand in Philadelphia, according to a Center City District and Central Philadelphia Development Corp.

Demographic trends that have helped boost Center City’s population by 16 percent since 2000 and household incomes that average more than $107,000 have helped to make Philadelphia a place where retailers want to have a presence. A total of 33 national companies have established a presence along Philadelphia’s burgeoning retail corridors since 2013. These stores join regional and local boutiques, which make up 78 percent of Center City's tenants, the report said.

Some fun facts. Center City has 1,017 retailers, which include: 226 apparel stores; 159 jewelry stores; 137 food and drink retailers; and 117 home and garden establishments. Of the city’s 956 dining establishments, 440 are full-service restaurants and 309 are takeout eateries.

The demand for retail space along Philadelphia’s most desirable High Streets, such as Walnut Street, has also meant rents have risen. On Walnut Street, rents are running about $154 a square foot and expected to continue to increase.

The report also noted that the demand has spurred new retail development. Projects totaling 2.3 million square feet and $6.7 billion in investment are either underway or planned to be completed by 2018.

Source: Philadelphia Business Journal